FBA / FBM: Pros and Cons

Amazon has two ways to sell your products:

FBA: Fulfilled by Amazon. You send the product to Amazon, and they inventory it, pick it, pack it and ship it to the customer when it is purchased

FBM: Fulfilled by Merchant (i.e. you). You list the product on Amazon, but when an order somes in you are responsible to pack it, print the shipping and get it to the shipper in the appropriate time frame.

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There are pros and cons to each, so I’ll share my thoughts below:

FBA – Pro:

  • Easier. Instead of packing sending 25 purchases individually, just box up all 25 products and send to Amazon one time. They handle the rest.
  • Faster. It’s much fast to put 10, 20 or 100 products in a large box one time, send them to Amazon and let them handle picking, packing and shipping.
  • Less Risk: Amazon is responsible for getting the right product shipped to the right person, and on time

FBA – Con

  • Higher fees
  • Risk of lost inventory
  • Less direct customer interaction

FBM – Pro

  • Faster listing. When you do FBA, you ship to Amazon and it may be weeks before your inventory is available for sale. Wtih FBM, it’s available to sell as soon as you add the product to your inventory
  • Fees are generally lower since you don’t have inventory, storage and handling fees. That potentially makes it easier to find profitable products
  • Choose your own shipping option

FBM – Con

  • It seems to me the main downaside is time.
    • Time spent picking, packing and shipping every single sale
    • Harder to scale up to high volume wthout hiring help
    • You handle all returns
    • Maintain your own inventory. As you buy more, your house is liable to fill up with your Amazon products. 😊